Oh, sure—it’s easy to classify yourself as an “aggressive” investor with a “high tolerance for risk” in the middle of a rising bull market. It is pretty easy to feel like a investment genius. Listen up genius: the market is different now. If you were recently patting yourself on the back for your smart moves you’re probably questioning your brilliance now.
And you’re not alone.
USAToday ran a poll recently that classified people today into four economic types. These types were: Prudent Pessimists, Bad Shape and Suffering, In-Control Realists, and I’m Okay, the Economy’s Not. Only one of these types remained largely optimistic about the economy and the future.
How do current effects affect your perception of the market? Has your economic personality shifted from bullish to mouse-ish?
If you’re feeling like the earth is shifting beneath your feet, here’s what you should do:
Educate Yourself. The more you read and learn about personal finance the better you’ll feel about your decision-making. You may indeed be an aggressive investor capable of handling risk. If so, this your testing ground. Read what others have to say about the economy ranging from idealistic hope to possible doomsday scenarios.
Think Before You Move. Even if you’re accustomed to making quick decisions now is a good time to really do your homework and consider your options. Try to remove external media and pressures from your decision-making process.
Stay True to You. No one is going to care more about your money and it’s management than you. Don’t give your financial future over to anyone. Seek the advice of professionals but ultimately make your own decisions. It is your financial future so stay true to your goals and strategy.